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Moody’s downgrades Six Nations putting UK on negative watch | Insight Europe

United Kingdom

United Kingdom (Photo credit: stumayhew)

Moody’s did not derate France because of the size of its Economy and increased productivity , probably vindicating the French tirade against rating agenceis after the S&P downgrade and the French Fitch’ refusal to downgrade  the home grounds. the decision to rerate the UK Outlook to negative , puts the state  on warning that though its AAA had resilience it needed to watch its finances. The UK has been proceeding on a balanced budget predicate with large spending cuts and growth at risk. the Chancellor took the rating as support of his policies of austerity and as a warning for its 500% debt standing currently

Moody’s highlighted UK debt and its interlinkages with the Eurozone putting it at risk for the discussion note accompanying the rating.

Spain was downgraded to A3 supporting the view that markets and S&P are still ascribing unnecessary stability to this corner of the Eurozone, while Italy’s recovery in the last month still prompted a downgrade to A2, Portugal downgraded to Ba2 even as yields in Portugal moved down 3% from record 14% levels near the Greek summits

The other nations put on negative watch were Slovakia, Slovenia and Malta all recent entrants to the Eurozone and yet not ‘disciplined’ by the fiscal treaty

France in the mean time has moved ahead with plans to recover EUR 1 bln in revenues from a ‘tobin’ tax on trading

 

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One comment on “Moody’s downgrades Six Nations putting UK on negative watch | Insight Europe

  1. Pingback: S&P confirms its Spain ratings impact | Banking insight | The Banking and Strategy Initiative

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This entry was posted on February 14, 2012 by in Financial Markets and tagged , , , , , , , .

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